Let’s take a closer look at what luxury cars are, how much they cost to own, and whether or not they’re worth the investment. As with many things in life, luxury is often more comfortable and fully embodies the saying “you get what you pay for”. Does that hold with luxury cars?
If you do want to invest in the social status symbol of luxury car ownership, you’ll be best served to protect what you’ve purchased with a service plan, like this BMW extended warranty or similar.
What Are Luxury Cars
In the past, luxury was associated with specific brand-name cars, such as Lincoln, Escalade, and Lexus. While these brands are proceeded by their reputation, they are no longer the king cats of the luxury car market.
Many brands formerly considered less than luxury is now branching into the market and providing more than worthy competitors to the old boys. For example, Jeep has released plans and presale information for their Grand Wagoneer with options and bougie add-ons that can push the sticker price upwards of $100,000.
What Sets Them Apart from Other Vehicles On the Market
While there is no stark line between luxury and premium vehicles, there is a trend toward luxury models seeing safety features and comfort add-ons available before they are installed in lower-level cars. Luxury cars have traditionally been land yachts full of all the bells and whistles desired by the car-enthusiast community.
Luxury sports vehicles are also standard but not always listed under “traditional luxury”. Cars with performance parts, better safety ratings, higher quality cosmetic features, and a stronger brand reputation are considered a luxury.
How Much More Do Luxury Cars Cost to Own and Operate Compared to Regular Cars
The sticker price isn’t the only thing that will see a dramatic cost shift from commuter cars to luxury cars. You’ll also see a vast difference in the costs to repair and maintain a luxury car. Further, the fuel costs associated with a commuter car are relatively reasonable, increasing only a few dollars yearly. However, most luxury cars require premium fuel to maintain optimal performance standards.
One of the ways standard commuter cars keep repair costs down is by making most of the moving parts of the system as interchangeable between models as possible. One of the major considerations of a luxury brand is having model-specific performance parts as the base of the car.
The Benefits of Owning a Luxury Car
There are several reasons why people are willing to spend much more on a luxury car. In addition to the status symbol, many find that these cars’ comfort, features, and performance are well worth the increased costs. Some of the benefits associated with ownership of a luxury car include:
- Better Safety Ratings: Luxury car companies often go the extra mile to ensure their vehicles have better safety ratings. This is often done by making features like airbags and seatbelts standard in all models and installing other state-of-the-art safety equipment.
- More Comfortable: Luxury cars are designed with comfort in mind. From heated seats and steering wheels to massaging seats and top-of-the-line audio systems, luxury cars are designed to make the ride as enjoyable as possible.
- More Reliable: Luxury cars are often more reliable than their lower-priced counterparts. This is due in part to the higher quality materials used in construction and the fact that luxury car companies have a reputation to uphold.
- Better Resale Value: Luxury cars hold their value better than other cars on the market, meaning you can get more money back when you sell.
Despite the higher initial cost, luxury cars often make financial sense in the long run. When you factor in all the benefits of ownership, it’s easy to see why luxury cars are so popular. BMW’s extended warranty can provide you with peace of mind knowing that your investment is protected. With so many benefits, it’s no wonder luxury cars are more popular than ever.
How to Maintain a Luxury Car So That it Retains Its Value Over Time
Like your own body, a luxury car requires high-quality sustenance, routine maintenance, and regular cleaning. A car loses more value from mechanical challenges than from cosmetic blemishes. To maintain your car effectively, it’s best to stick to a routine maintenance schedule and take your car to a dealership service center or mechanic shop that specializes in luxury cars.
Washing and detailing the car frequently will also help keep your luxury ride in good condition, reducing the likelihood of paint scratches, chips, and dents. A thorough detailing inside will keep the dust down, the floors clean, and the seats comfortable. Protecting your surfaces with conditioners and waxes will help with the longevity of the materials.
Different Types of Luxury Cars Available on the Market Today
As mentioned, old-school luxury cars were often sanctioned only to a handful of brands. They were typically tiny sports cars, like Lamborghini, or large oversized vehicles, such as Lincoln’s top three models in Canada as of the end of 2021, the Corsair, the Aviator, and the Nautilus.
The new kids on the block, gaining market share quarter over quarter since the lowest point of the pandemic, include models that fit into the non-traditional sedan, coupe, convertible, and SUV categories, while still hitting all the markers of modern luxury. Which body type is right for your needs in a luxury vehicle?
By industry standards, a sedan is a four-door vehicle that is compact and economical. Many traditionally luxury brands are bouncing back from the challenging economic period from 2020-2021 by releasing sedans modeled after luxury vehicles of the past. One example is the Cadilac CT5, which sold 925 units in 2021. The BMW 3 Series sold over 4300 units in 2021.
A coupe is considered a compact two-door vehicle with an enclosed roof and is typically economical in fuel consumption. In short, a coupe is essentially a sports car designed by a luxury brand. Porsche, Aston Martin, Jaguar, and Audi are all known for their luxury coupes and high-speed performance engines.
In the first quarter of 2021, the car sales market saw a 2% increase in purchases of luxury cars, while that same period saw a 27% increase in luxury SUV sales. An SUV is a raised, four-door, all-wheel, or four-wheel drive utility vehicle capable of off-roading and traversing treacherous road conditions. In recent years, the SUV has made its way into the lists of luxury with releases such as the Audi Q5, the Lexus RX, and the Audi Q3. These were the top three selling luxury SUVs in the Canadian market for much of 2021.
Tips for insuring your luxury car and getting the most coverage for your money
Much like any other vehicle, you’ll want to consider the insurance coverage you need for your luxury car. Comprehensive insurance covers damage to your car as well as damage to other people or property. It’s usually more expensive than third-party insurance but is infinitely more helpful when covering the costs of a luxury car.
When you’re shopping around for insurance, be sure to compare apples to apples. Some insurers will try to sell you a low premium but high excess policy. That means you’ll have to pay more out of your pocket if you have an accident. Reading the fine print to know exactly what you’re getting for your money is essential.
As with any big purchase, it’s always a good idea to shop around and compare prices before you buy. That way, you can be sure you’re getting the best deal on your BMW extended warranty or luxury car insurance policy.
How to Get an Extended Warranty on Your BMW or Other Luxury Car
An extended warranty is a service contract that covers repairs or replacements after your original BMW warranty expires. Many BMW dealers offer extended warranties, but you can buy one from a third-party provider.
The cost of an extended warranty depends on the contract’s length and the coverage level. You can usually choose from several levels of coverage, including powertrain, comprehensive, and bumper-to-bumper.
The bottom line: Is it worth it to own a luxury car?
Owning a luxury car can be expensive, but there are ways to insure you get the most bang for your buck. Shop around for extended warranty policies and compare prices before you buy. Be sure to read the fine print to know what’s covered and what’s not. Keep up on maintenance, and provide the car with the premium fuel it craves.